Stocks Modestly Higher into Afternoon on Earnings Optimism, Stable Long-Term Rates, Short-Covering, Road & Rail/Pharma Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.1 -2.1%
• Bloomberg Global Risk On/Risk Off Index 3,329.0 -127.0 points

• Euro/Yen Carry Return Index 136.0 -.3%

• Emerging Markets Currency Volatility(VXY) 9.2 -.3%

• S&P 500 Implied Correlation 51.4 -.7%

• ISE Sentiment Index 142.0  +13.0 points
  

• Total Put/Call .68 -9.3%

• NYSE Arms 1.60 +128.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.10 -.8%
  

• US Energy High-Yield OAS 357.02 +.43%

• European Financial Sector CDS Index 57.97 -1.6%

• Italian/German 10Y Yld Spread 124.0 -8.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 82.25 +1.0%
  

• Emerging Market CDS Index 185.97 -.77%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 32.91 -.72%

• 2-Year Swap Spread 20.5 +.5 basis point
  

• TED Spread 8.75 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 +1.5 basis points
  
• MBS  5/10 Treasury Spread  64.5 +2.0 basis points
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 57.95 -.16%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 108.0 unch.
  

• China Iron Ore Spot 97.40 USD/Metric Tonne -.7%

• Citi US Economic Surprise Index -19.7 +.8 point

• Citi Eurozone Economic Surprise Index -51.7 -.2 point
  

• Citi Emerging Markets Economic Surprise Index -22.1 +.3 point

• 10-Year TIPS Spread 2.51 -2.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 95.1% chance of no change at Jan. 26th meeting

US Covid-19:

• 155 new infections/100K people(last 7 days total) +2/100K people
• 29% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +5 open in Japan 
• China A50 Futures: Indicating -9 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio:

• Higher: On gains in my tech/industrial/medical sector longs and emerging market shorts
  

• Disclosed Trades:  None
  

• Market Exposure:  75% Net Long